As the summer winds down and kids are going back to school, it is a great time for home owners and businesses to start getting their heads back in the game and considering their end of the year preparations. Here are 8 mid-year finance and operation tips I put together from my 11 years of experience managing businesses. Please keep in mind, some recommendations may not apply due to the the size, industry or fiscal year of your company, but it is important to be aware and discuss these topics with your bookkeeper, CFO and or accountant.
- Complete a brief review of your books, checking for errors in the accounts expenses and incomes were attributed to. Correcting an error now will help you avoid 1) repeating it and 2) having to correct (or pay your accountant) at the end of the tax year. If you expect to be audited, as many government contractors do, get ahead of those preparations early!
- Forecast the rest of your fiscal year. If you know you historically have slow or heavy business in the second half, you will want to start planning for your upcoming expenses, incomes, and even HR needs.
- Depending on your previous review and forecast, start saving for taxes, employees raises, bonus, and any slow periods. If you know a heavy business load is coming, you can also plan out how to use funds for the rest of the year and pay off debt from earlier in the year.
- Have your Tax Accountant of CPA take a brief look at your reports as well. Not a full analysis, but a review. If you can afford an early tax payment after a good half of the year, you won't have to worry as much come the end of the year.
- Depending on your financial status, or your HR needs, you should consider any upcoming hiring early. You will need at least 2 but usually 3 months to put together an employment description, advertise, interview, hire and onboard.
- Whether or not you are hiring now, any down time or before you have requirements, is a great time to review your employment descriptions, policies, procedures, and handbook. You should consider your current office, company culture, employees, and the direction you want your business to go in and then be sure that your documents all reflect that.
- Organize and declutter! (I couldn't resist). Gather up old documents, records, files, receipts that are past 7 years and take them to be shredded. Now 7 years is the general standard, but be sure to check with your industry specific standards and legal requirements.
- Start considering your business goals and intentions for next year. It is never a bad time to start working toward those and some may need a little prep work before they can be achieved.
And of course, if you are feeling overwhelmed, confused or interesting in having assistance with any of these tasks, I am here to help! Please do not hesitate to contact me. Have a great rest of your summer!